Commission income

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

03 November 2013 respected sir,
i am a insurance commission agent. i have received gross commission amounting to rs 5,20,000 during fy 2012-13.now i have a querry .how much net income that i can declare safely to the department to avoid any further attention of the department .
please some one advise.thanks in advance with devali greetings.

CA Pallav Singhania

CA Pallav Singhania (Expert)
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03 November 2013 You can reduce your Income Tax..

Invest in parents name..

If your parents do not have sizeable income, it's best to ask them to invest and receive your income. Remember that the basic tax exemption limit for senior citizens is higher at Rs 2.5 lakhs and they also receive higher interest on most fixed savings instruments like fixed deposits..

Diversify your portfolio...

You can reduce your tax liability by diversifying your portfolio.

For example, if you have rental and interest income, you can put money into stocks. Dividend from shares do not attract tax and you can sell shares after a year, as they do not attract capital gains tax after one year. But, if you put money in fixed deposits, the interest income will attract tax.

LIC/NSCs are good options too...